Summary
Air Products and Chemicals, Inc. (APD) announced on May 6, 2016, the signing of a definitive Purchase Agreement to sell its Performance Materials division (PMD Business) within the Materials Technologies segment to Evonik Industries AG for $3.8 billion in cash, plus the assumption of certain liabilities. This strategic divestiture represents a significant move for Air Products, allowing it to focus on its core industrial gases business. The transaction is subject to customary closing conditions, including antitrust approvals and other regulatory clearances, with an expected closing date around May 6, 2017. The agreement includes non-compete and non-solicitation clauses for Air Products post-closing, and Evonik has agreed to pay a termination fee under specific circumstances. Investors should monitor the regulatory approval process and potential adjustments to the purchase price.
Key Highlights
- 1APD has entered into a definitive agreement to sell its Performance Materials division (PMD Business) to Evonik Industries AG.
- 2The total transaction value is approximately $3.8 billion in cash, plus the assumption of certain liabilities by Evonik.
- 3This divestiture allows Air Products to concentrate on its core industrial gases operations.
- 4The sale is subject to standard closing conditions, including regulatory approvals (e.g., HSR Act) and IT separation.
- 5The agreement includes non-compete and non-solicitation provisions for Air Products following the closing.
- 6A termination fee of $190 million is stipulated under specific circumstances, primarily related to antitrust issues or failure to close by the Outside Date.
- 7The transaction has an Outside Date of May 6, 2017, with a potential three-month extension.